Hinduja Foundries tumbled 18.3% to Rs 35.95 at 14:53 IST on BSE, with the stock extending Thursday's slump triggered by the boards of the company and Ashok Leyland approving the merger of the company with the latter.
Shares of Ashok Leyland were down 1.29% at Rs 80.50.
Meanwhile, the S&P BSE Sensex was up 225.65 points or 0.79% at 28,638.54.
On BSE, so far 3.04 lakh shares were traded in the counter of Hinduja Foundries, compared with average daily volume of 5,422 shares in the past one quarter. The stock hit a high of Rs 41.60 and a low of Rs 35.20 so far during the day. The stock had hit a 52-week low of Rs 27.30 on 12 February 2016. The stock had hit a 52-week high of Rs 65 on 7 July 2016. The stock had underperformed the market over the past one month till 15 September 2016, sliding 17.6% compared with 0.93% rise in the Sensex. The scrip had also underperformed the market in past one quarter, declining 23.34% as against Sensex's 6.31% rise.
The small-cap company has equity capital of Rs 207.05 crore. Face value per share is Rs 10.
Shares of Hinduja Foundries tumbled by the maximum permissible level of 20% to settle at Rs 44 yesterday, 15 September 2016, after the board of directors of the company and Ashok Leyland approved a proposal for the merger of Hinduja Foundries with Ashok Leyland. As per the terms of the merger proposal, shareholders holding 100 shares in Hinduja Foundries will get 40 shares of Ashok Leyland. One thousand 2008 series global depository receipts (GDRs) of Hinduja Foundries will get 133 shares of Ashok Leyland. One 2006 series GDRs of Hinduja Foundries will get 4,800 shares of Ashok Leyland. The appointed date for the proposed transaction is 1 October 2016. Vinod Dasari, CEO and Managing Director of Ashok Leyland said that the amalgamation will result in operational efficiencies and help realize cost synergies.
The transaction is subject to various regulatory approvals and approval of shareholders of both the companies.
Hinduja Foundries reported net loss of Rs 36.58 crore in Q1 June 2016 compared with net loss of Rs 98.52 crore in Q1 June 2015. Net sales rose 10.2% to Rs 166.24 crore in Q1 June 2016 over Q1 June 2015.
Hinduja Foundries is one of the India's leading foundry group with the capacity to produce cylinder block and head ranging from 25 kilograms (kgs) to 500 kgs. From castings for automobiles and tractors to industrial engines, construction equipment and power generation equipment, Hinduja Foundries meets the stringent requirement of diverse segments. It even caters to the exceptionally high standards of defence applications.
Ashok Leyland is one of the leading manufacturers of medium and heavy commercial vehicles in India.
Both, Ashok Leyland and Hinduja Foundries are a part of Hinduja Group.
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